Employer's Annual Federal Tax Return and Modifications to the Deposit Rules, 79423-79424 [E8-30592]

Agencies

• Internal Revenue Service
• DEPARTMENT OF THE TREASURY

[Federal Register Volume 73, Number 249 (Monday, December 29, 2008)]
[Proposed Rules]
[Pages 79423-79424]
From the Federal Register Online via the Government Printing Office [www.gpo.gov]
[FR Doc No: E8-30592]


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DEPARTMENT OF THE TREASURY

Internal Revenue Service

26 CFR Part 31

[REG-148568-04]
RIN 1545-BD93


Employer's Annual Federal Tax Return and Modifications to the 
Deposit Rules

AGENCY: Internal Revenue Service (IRS), Treasury.

ACTION: Notice of proposed rulemaking by cross-reference to temporary 
regulations.

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SUMMARY: This document revises the notice of proposed rulemaking 
published in the Federal Register on January 3, 2006. In the Rules and 
Regulations section of this issue of the Federal Register, the IRS is 
issuing temporary regulations relating to the annual filing of Federal 
employment tax returns and requirements for employment tax deposits 
under sections 6011 and 6302 of the Internal Revenue Code (Code). Those 
temporary regulations generally allow certain employers to file a Form 
944, ``Employer's ANNUAL Federal Tax Return,'' rather than Form 941, 
``Employer's QUARTERLY Federal Tax Return.'' In addition to rules 
related to Form 944, those temporary regulations provide an additional 
method for employers who file Form 941 to determine whether the amount 
of accumulated employment taxes is considered de minimis. The temporary 
and proposed regulations affect taxpayers that file Form 941, 
``Employer's QUARTERLY Federal Tax Return,'' Form 944, ``Employer's 
ANNUAL Federal Tax Return,'' and any related Spanish-language returns 
or returns for U.S. possessions. The text of those regulations also 
serves as the text of these proposed regulations.

DATES: Written or electronic comments and requests for a public hearing 
must be received by March 30, 2009.

ADDRESSES: Send submissions to: CC:PA:LPD:PR (REG-148568-04), room 
5203, Internal Revenue Service, POB 7604, Ben Franklin Station, 
Washington, DC 20044. Submissions may be hand-delivered Monday through 
Friday between the hours of 8 a.m. and 4 p.m. to: CC:PA:LPD:PR (REG-
148568-04), Courier's Desk, Internal Revenue Service, 1111 Constitution 
Avenue, NW., Washington, DC, or sent electronically via the Federal 
eRulemaking Portal at https://www.regulations.gov (IRS REG-148568-04).

FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations, 
Audra M. Dineen at (202) 622-4910; concerning submissions of comments 
and requests for a public hearing, Oluwafunmilayo Taylor of the 
Publications and Regulations Branch at (202) 622-7180 (not toll-free 
numbers).

SUPPLEMENTARY INFORMATION:

Background

    Temporary regulations in the Rules and Regulations section of this 
issue of the Federal Register amend the Regulations on Employment Taxes 
and Collection of Income Tax at Source (26 CFR part 31) under section 
6011 relating to the federal employment tax return filing requirements 
and section 6302 relating to the employment tax deposit requirements. 
The regulations concern the reporting and paying of income taxes 
withheld from wages and taxes under the Federal Insurance Contributions 
Act (FICA). The text of those temporary regulations also serves as the 
text of these proposed regulations. The preamble to the temporary 
regulations explains the temporary regulations and these proposed 
regulations. The temporary and proposed regulations are part of the 
IRS's effort to reduce taxpayer burden by permitting certain employers 
to file one return annually to report their employment tax liabilities 
instead of four quarterly returns.

Proposed Effective/Applicability Date

    The regulations, as proposed, will apply to taxable years ending on 
or after the date of publication of the Treasury decision adopting 
these rules as final regulations in the Federal Register.

Special Analyses

    It has been determined that this notice of proposed rulemaking is 
not a significant regulatory action as defined in Executive Order 
12866. Therefore, a regulatory assessment is not required. It also has 
been determined that section 553(b) of the Administrative Procedure Act 
(5 U.S.C. chapter 5) does not apply to these regulations.
    It is hereby certified that these regulations will not have a 
significant economic impact on a substantial number of small entities 
pursuant to the Regulatory Flexibility Act (5 U.S.C. Chapter 6). The 
regulations under sections 6011 and 6302 affect only a small number of 
taxpayers that file employment tax returns. Therefore, the Treasury 
Department and the IRS have determined that these regulations will not 
affect a substantial number of small entities. In addition, the 
Treasury Department and the IRS have determined that any impact on 
entities affected by the regulations will not be significant. The 
regulations merely allow certain employers to file their employment tax 
return annually rather than quarterly. Therefore, these regulations 
will reduce the burden on these employers, by reducing the number of 
returns they must file each year. Based on these facts, the IRS has 
determined that these regulations will not have a significant economic 
impact on a substantial number of small entities. Pursuant to section 
7805(f) of the Internal Revenue Code, this regulation has been 
submitted to the Chief Counsel for Advocacy of the Small Business 
Administration for comment on their impact on small business.

Comments and Requests for a Public Hearing

    Before these proposed regulations are adopted as final regulations, 
consideration will be given to any written (a signed original and eight 
(8) copies) or electronic comments that are submitted timely to the 
IRS. The IRS and Treasury Department request comments on the substance 
of the

[[Page 79424]]

proposed regulations, as well as on the clarity of the proposed rules 
and how they can be made easier to understand. All comments will be 
available for public inspection and copying. A public hearing will be 
scheduled if requested in writing by any person that timely submits 
written comments. If a public hearing is scheduled, notice of the date, 
time, and place for the public hearing will be published in the Federal 
Register.

Drafting Information

    The principal authors of these final regulations are Raymond Bailey 
and Audra M. Dineen of the Office of the Associate Chief Counsel 
(Procedure and Administration).

List of Subjects 26 CFR Part 31

    Employment taxes, Income taxes, Penalties, Pensions, Railroad 
retirement, Reporting and recordkeeping requirements, Social security, 
Unemployment compensation.

Proposed Amendments to the Regulations

    Accordingly, 26 CFR part 31 is proposed to be amended as follows:

PART 31--EMPLOYMENT TAXES AND COLLECTION OF INCOME TAX AT SOURCE

    Paragraph. 1. The authority citation for part 31 continues to read 
in part as follows:

    Authority: 26 U.S.C. 7805 * * *

    Par. 2. Section 31.6011(a)-1, which was proposed to be amended at 
71 FR 46 on January 3, 2006, is further amended by revising paragraph 
(a)(1) and paragraph (a)(5) and adding paragraph (g) to read as 
follows:


Sec.  31.6011(a)-1  Returns under Federal Insurance Contributions Act.

    (a) * * * (1) [The text of proposed Sec.  31.6011(a)-1(a)(1) is the 
same as the text of Sec.  31.6011(a)-1T(a)(1) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (5) [The text of proposed Sec.  31.6011(a)-1(a)(5) is the same as 
the text of Sec.  31.6011(a)-1T(a)(5) published elsewhere in this issue 
of the Federal Register].
* * * * *
    (g) [The text of proposed Sec.  31.6011(a)-1(g) is the same as the 
text of Sec.  31.6011(a)-1T(g) published elsewhere in this issue of the 
Federal Register].
    Par. 3. Section 31.6011(a)-4, which was proposed to be amended at 
71 FR 46 (January 3, 2006), is further amended by revising paragraphs 
(a)(1) and (a)(4) and adding paragraph (d) to read as follows:


Sec.  31.6011(a)-4  Returns of income tax withheld.

    (a)* * *(1) [The text of proposed Sec.  31.6011(a)-4(a)(1) is the 
same as the text of Sec.  31.6011(a)-4T(a)(1) published elsewhere in 
this issue of the Federal Register].
* * * * *
    (4) [The text of proposed Sec.  31.6011(a)-4(a)(4) is the same as 
the text of Sec.  31.6011(a)-4T(a)(4) published elsewhere in this issue 
of the Federal Register].
* * * * *
    (d) [The text of proposed Sec.  31.6011(a)-4(d) is the same as the 
text of Sec.  31.6011(a)-4T(d) published elsewhere in this issue of the 
Federal Register].
    Par. 4. Section 31.6302-0 is amended by revising the entries for 
Sec.  31.6302-1(f)(4)(i), (g)(1) and (n) to read as follows:


Sec.  31.6302-0  Table of contents.

* * * * *


Sec.  31.6302-1  Federal tax deposit rules for withheld income taxes 
and taxes under the Federal Insurance Contributions Act (FICA) 
attributable to payments made after December 31, 1992.

* * * * *
    (f) * * *
    (4) * * *
    (i) [The text of the proposed entry for Sec.  31.6302-1(f)(4)(i) is 
the same as the text of the entry for Sec.  31.6302-1T(f)(4)(i) 
published elsewhere in this issue of the Federal Register].
* * * * *
    (g) * * *
    (1) [The text of the proposed entry for Sec.  31.6302-1(g)(1) is 
the same as the text of the entry for Sec.  31.6302-1T(g)(1) published 
elsewhere in this issue of the Federal Register].
* * * * *
    (n) [The text of the proposed entry for Sec.  31.6302-1(n) is the 
same as the text of the entry for Sec.  31.6302-1T(n) published 
elsewhere in this issue of the Federal Register].
    Par. 5. Section 31.6302-1, which was proposed to be amended at 71 
FR 46 on January 3, 2006, is further amended by revising paragraphs 
(b)(4), (c)(5), (c)(6), (d) Example 6, (e)(2), (f)(4), (f)(5) Example 
3, (g)(1) and (n) to read as follows:


Sec.  31.6302-1  Federal tax deposit rules for withheld income taxes 
and taxes under the Federal Insurance Contributions Act (FICA) 
attributable to payments made after December 31, 1992.

* * * * *
    (b)* * *
* * * * *
    (4) [The text of proposed Sec.  31.6302-1(b)(4) is the same as the 
text of Sec.  31. 6302-1T(b)(4) published elsewhere in this issue of 
the Federal Register].
    (c) * * *
    (5) [The text of proposed Sec.  31.6302-1(c)(5) is the same as the 
text of Sec.  31. 6302-1T(c)(5) published elsewhere in this issue of 
the Federal Register].
    (6) [The text of proposed Sec.  31.6302-1(c)(6) is the same as the 
text of Sec.  31. 6302-1T(c)(6) published elsewhere in this issue of 
the Federal Register].
    (d)* * *
    Example 6. [The text of proposed Sec.  31.6302-1(d) Example 6 is 
the same as the text of Sec.  31. 6302-1T(d) Example 6 published 
elsewhere in this issue of the Federal Register].
    (e) * * *
    (2) [The text of proposed Sec.  31.6302-1(e)(2) is the same as the 
text of Sec.  31. 6302-1T(e)(2) published elsewhere in this issue of 
the Federal Register].
    (f) * * *
    (4) [The text of proposed Sec.  31.6302-1(f)(4) is the same as the 
text of Sec.  31. 6302-1T(f)(4) published elsewhere in this issue of 
the Federal Register].
    (5) * * *
    Example 3. [The text of proposed Sec.  31.6302-1(f)(5) Example 3 is 
the same as the text of Sec.  31. 6302-1T(f)(5) Example 3 published 
elsewhere in this issue of the Federal Register].
    (g) * * * (1) [The text of proposed Sec.  31.6302-1(g)(1) is the 
same as the text of Sec.  31. 6302-1T(g)(1) published elsewhere in this 
issue of the Federal Register].
* * * * *
    (n) [The text of proposed Sec.  31.6302-1(n) is the same as the 
text of Sec.  31. 6302-1T(n)(1) published elsewhere in this issue of 
the Federal Register].
* * * * *

Linda E. Stiff,
Deputy Commissioner for Services and Enforcement.
 [FR Doc. E8-30592 Filed 12-24-08; 8:45 am]
BILLING CODE 4830-01-P